COGECO CABLE FINDS THAT THE COMPENSATION FOR SIGNAL FOR CONVENTIONAL BROADCASTERS IS AN INAPPROPRIATE RESPONSE TO A BROADER PROBLEM
PRESS RELEASE
For immediate release
Cogeco Cable finds that the compensation for signal for conventional
broadcasters is an inappropriate response to a broader problem
Montréal, November 24, 2009 – Cogeco Cable appeared before Canadian Radio-television and
Telecommunications Commission (CRTC) hearings today to present its position on compensation
for signal for conventional broadcasters.
Cogeco Cable believes the broadcasting industry is grappling with problems other than the
erosion of market share and advertising revenue for conventional broadcasters, in particular
rampant spending to purchase major US network programming. Cogeco Cable argued that
granting broadcasters the right to charge compensation for signal would be irresponsible and
inappropriate.
Among other substantive difficulties, Cogeco Cable cites:
• Conventional broadcasters invest much more in foreign programming than Canadian
programming and do not show any willingness to change;
• The cable and satellite television distribution industry already contributes substantially to
the production of programs broadcast by conventional broadcasters with an annual
contribution of over $166 million in 2008 for various funds supporting Canadian
programming, in addition to $102 million for the Local Programming Improvement Fund
(LPIF).
• The concept of the market value for signal only works in a free market, which does not
currently apply as the distribution of conventional television signals is a CRTC
requirement;
• If a market value is attributed to conventional broadcaster signals, it would be relevant to
attribute a value to the cable distribution facilities that make distribution of these signals
possible;
• Most conventional broadcasters also own specialty channels that rebroadcast a fairly
significant portion of content already broadcast by conventional broadcasters. These
specialty channels collect compensation for signal, which already provide indirect fees for
carriage to conventional broadcasters.
• If the CRTC grants compensation for signal to conventional broadcasters, we can expect
the US conventional broadcasters, whose signals are currently not subject to
compensation for signal in Canada, to follow suit and require as well as compensation for
signal in this country.
“Compensation for signal is only a partial and inappropriate solution to a much broader problem,”
says Louis Audet, President and Chief Executive Officer, Cogeco Cable. “We are entitled to ask
why the broadcasters are investing so much more in foreign programming than in producing
Canadian content. We are also entitled to ask why they are not willing to commit to spending
potential compensation for signal on Canadian content, while they have made local television
their war horse. It would be irresponsible to create a situation where consumers pay more,
because ultimately, they will pick up the tab without getting anything in return."
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Cogeco Cable proposes three solutions to the problems currently facing conventional television:
• A CRTC requirement that the amount invested in foreign programming never exceed the
amount invested in Canadian programming. This would allow a bigger proportion of funds
allocated to local programming and restrict frenzied bidding for US programming.
•
Carriage by Cogeco Cable of local signals of conventional broadcasters through its
network, to areas these same broadcasters consider unprofitable to convert to a digital
over-the-air transmitter;
• Implementation of a local news service under Cogeco Cable’s current community
programming budget, in smaller markets where conventional broadcasters consider it
unprofitable to operate a local television station.
“We believe these solutions will allow Canadian conventional broadcasters to continue to receive
the required funding to maintain them through existing programs (Canada Media Fund and
subsidies via the income tax of all Canadians), without carrying the full weight of local production.
Moreover, this will allow the entire system to breathe easier and particularly provide Canadians
with greater assurance of access to the local programming they want, without having to spend
more,” said Mr. Audet.
ABOUT COGECO CABLE
Cogeco Cable (www.cogeco.ca) is the second largest cable operator in Ontario, Québec and
Portugal, in terms of the number of Basic Cable service customers served. Through its two-way
broadband cable networks, Cogeco Cable provides its residential customers with Audio,
Analogue and Digital Television, as well as HSI and Telephony services. Cogeco Cable also
provides its business customers with data networking, e-business applications, video
conferencing, web hosting, Ethernet, private line, VoIP, HSI, black fibre, data storage and
security, and co-location services and other advanced communication solutions. Cogeco Cable’s
subordinate voting shares are listed on the Toronto Stock Exchange (TSX: CCA).
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Information: Marie Carrier
Director, Corporate Communications
Tel: 514 764-4700